India's Shapoorji Pallonji to sell stake in biofuel JV

Sep 23, 2013 - Indian business conglomerate Shapoorji Pallonji intends to dispose of its stake in Bharat Renewable Energy Ltd (BREL), its biofuel joint venture with Bharat Petroleum Corp Ltd (BOM:500547) and Nandan Cleantec Plc (LON:NAND).

The unit of the group has agreed to remain a joint venture partner until Bharat Petroleum finds a suitable purchaser, a senior BPCL official said as cited by Business Standard today. Shapoorji Pallonji Agri Management Services first offered its interest to the other promoters of the JV. Each of the companies has an equal stake in the business.

BREL was set up in 2008 with an authorised capital of INR 300 million (USD 4.8m/EUR 3.5m) to promote biofuel crop plantations in the Indian state of Uttar Pradesh. The company is focused on the cultivation and plantation of horticulture crops like Karanj, Jathropha and Pongamia as well as research and development and biofuel making.

During the fiscal year to March 31, 2013, BRAL incurred a loss of INR 21.3 million on a turnover of INR 4.1 million. The firm already has a Jathropha plantation of 8,987 acres (3,637 hectares). The joint venture was set up with an aim to cover one million acres of marginal land over the next 10-15 years and to produce one million tonnes of biodiesel.

(INR 10 = USD 0.160/EUR 0.118)

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